Ombudsman supports landlord in rent-to-rent dispute with agency
Summary
The Property Ombudsman has issued a proposed decision against a letting agency after finding it had moved a landlord’s student HMO into a rent-to-rent arrangement without the landlord’s knowledge or consent. The case also raised concerns about insurance validity, repairs, pest control, utility charging during void periods and management fee discrepancies, with compensation provisionally recommended.
Why it matters
Surveyors involved in residential management, leasehold or HMO work should note the risks around unauthorised changes in occupation and management arrangements, particularly where insurance cover may be affected. The case also highlights the importance of clear authority, accurate charging and robust record-keeping in agency-led property management.
Key points
- Proposed Ombudsman decision found a letting agency transferred a student HMO to a third party without landlord consent.
- Change in occupancy type reportedly invalidated the property insurance.
- Complaints were also upheld on repairs, pest control, utility charges during voids and an incorrect management fee.
- A provisional compensation award of £700 was proposed, plus a £1,288.13 credit already accepted by the agency.
- Mistoria Group says the decision is not final and is under review.
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